A new generation of enterprising families
11 March 21  /  Insights

The pandemic has taken its toll socially, physically, emotionally and economically, impacting everyone in some way, but it’s also made people re-assess, emerging stronger, smarter and more aware than before, with particular focus on the next generation.

We are in the midst of a major transition, with wealthy individuals playing increasingly pivotal roles in society, whether through business, philanthropy, politics, investment, social or environmental reform, and a new generation that is dynamic, driven and passionate looking to take control of the family enterprise.

In broad terms, for enterprising families, this involves looking at a number of key areas, including family dynamics, succession planning, wealth, health and wellbeing – with many looking at a transition of responsibilities within the family. In some cases, this transition is still some years away, but may still involve making significant decisions today within the family enterprise, paving the way for the future.

A new emerging generation

The new generation is one of achievers, often juggling numerous responsibilities, aware the world is changing rapidly around them, but choosing to respond in a thoughtful, measured way, building on the achievements of their families, while embracing social and environmental goals. This can involve managing complex investments along with family-related responsibilities, while donating time and money to help improve the world for others.

Switched on and proactive, this new generation is, in many ways, better prepared and better equipped to tackle the challenges of the rapidly evolving world around them, embracing new values and practices, encompassing both personal and financial success.

Some next generation facts and figures

According to a study*, compiled by the Campden Wealth Research team, 67% of the next generation of Ultra High Net Worth inheritors have a succession plan in place in relation to their family business and wealth, with 28% believing their families are unprepared for succession. 26 is the average age they take on their first role in the family business, 37 the age they assume leadership responsibility, 31 they learn about the extent of their family wealth and 33 when they begin to manage a portion of the wealth.

54% are worried they will lose the wealth their family has created, 44% worried their children will lose the wealth and 62% feel it is their responsibility to preserve and growth the family wealth.

43% have already assumed control of the family enterprise, with 26% planning to do so in the next 10 years and 45 years-old being the average age they take control of the family enterprise. They rank communication, family dynamics and health and the top three challenges they face, with nearly half concerned about their own health.

Unsurprisingly, 73% believe their children will have a more challenging life than their own, with climate change a key concern, and 56% thinking children should learn social and environmental responsibility at home.  40% expect to leave 10% of their wealth to philanthropic causes when they pass away, with over a third planning to leave more and 21% aiming to leave between 11%- 24%.

The research was undertaken before the pandemic, from October 2019 and March 2020, but highlights, nonetheless, a trend towards a more philanthropic approach, with greater awareness of current world issues and a focus on health paramount. It makes very interesting reading.

Lifestyle financial planning

As independent lifestyle financial planners, Mathews Comfort always looks at the complete picture, drawing on our expertise and financial knowledge to make a meaningful difference to our clients’ lives and achieve aspirational objectives, ensuring the decisions you make today shape the tomorrow you desire, ensuring the next generation carries forward your legacy.

To discuss any of the issues raised in this article, concerning succession, healthcare, wealth management or your current financial plan, please get in touch. Either call us on 01865 208 000 or email us at: info@mathewscomfort.co.uk

*Shaping Tomorrow, Today. Compiled by Camden Wealth, looking at UNW families in the USA, Canada and UK. Download pdf report at:

https://www.rbcwealthmanagement.com/_global/static/documents/the-next-generation-of-global-enterprising-families.pdf

 

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The meaning of ‘real wealth’
19 March 21  /  Insights